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November 2nd, 2004
LOCAL TRAVEL BANK COULD SECURE COMMERCIAL AIR SERVICE TO EASTERN HUB

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LOCAL TRAVEL BANK COULD SECURE COMMERCIAL AIR SERVICE TO EASTERN HUB

Economic Development for Central Oregon (EDCO) and the Redmond Airport announced today that they are working towards bringing new commercial air service from Redmond to Salt Lake City International Airport.  Negotiations are underway with Delta Air Lines to provide the region’s first direct connection east starting in Spring 2005.  Delta would become the third carrier to Redmond’s Roberts Field Airport.

“The view of the Three Sisters is spectacular, but seeing it four times for every round trip to the east coast is not what most commuters would prefer,” says Redmond Airport Manager Carrie Novick, referring to the challenges of first flying west in order to connect to eastbound flights. “We have known for a long time that going east is a priority - now we have the chance to make it happen.”

Delta’s regional jet service to Salt Lake City, Utah would give travelers direct access to 64 U.S. cities, in addition to connecting flights other airlines offer. However, the future of Delta’s service to Salt Lake depends on support from Central Oregon’s businesses and their participation in an Airline Travel Bank™.  The travel bank is essentially pre-paid travel committed by businesses in the region, and a revenue guarantee for the airline during its first 12 months of service. Back in April 2002, EDCO surveyed area employers in preparation for submitting an application for a federal grant from the Department of Transportation. At that time, 21 firms pledged $263,000 toward travel to Denver.

Organizers of the travel bank need at least 100 companies to sign up for an amount in excess of $500,000 for Salt Lake City.  EDCO and the Central Oregon Air Service Task Force (COAST) will be holding meetings over the next three weeks to provide information and the chance for businesses to get involved in the travel bank. 

“We have done the analysis of the airline and market, Delta has done its own analysis, and everyone agrees that Central Oregon has the passenger traffic needed to make the service a success,“ stated Roger Lee of EDCO.  “However, because air service start-ups are always expensive and often risky, Delta Air Lines wants to see a tangible commitment of that support in the form of a travel bank funded by local businesses before making a final decision on service. If area businesses can provide a strong show of commitment, we are confident Delta will move ahead with initiating service in the first half of 2005,” he said.

As part of a proposal made to Delta in August, a local incentive package was offered that includes a $500,000 federal grant from the Department of Transportation, $450,000 in marketing resources and $500,000 revenue guarantee provided through an Airline Travel Bank™.  Awarded in September 2003, the $500,000 federal grant will cover, if needed, airline losses in the first year of operation.  The $450,000 in marketing resources is being offered by a group of contributors including the Central Oregon Visitor’s Association, destinations resorts in the tri-county area, and Salt Lake City International Airport in an effort to advertise and market the new service.  The Airline Travel Bank™ of $500,000 is being assembled by EDCO and COAST.    The two groups have been working with the Redmond Airport to attract air service either to Denver or Salt Lake City for the past two years.

For more information, contact EDCO at (541) 388-3236.

Economic Development for Central Oregon (EDCO) is a membership-based, private, nonprofit organization dedicated to building a strong and secure economic future for Central Oregon. Learn more about EDCO at www.edforco.org.

From Salt Lake City, Utah, Delta Air Lines offers direct service to the following cities:

Frequently Asked Questions

What is the proposed service out of Redmond?
Proposed service out of Redmond will provide two daily round trip flights between Redmond and Salt Lake City using a 50 seat Canadair Regional Jet CRJ-200.

How does the Airline Travel Bank work?
Companies that have pledged support will be asked to execute an Airline Travel Bank (ATB) Partner Agreement and deposit the pledged amount in Columbus Bank & Trust. The Central Oregon ATB account will be held in the name of COAST and EDCO and individual sub accounts will be activated for each Travel Bank Partner. Travel Bank Partners are issued one or more credit cards (VISA) that can be used to access their deposited funds solely for the purpose of purchasing tickets on Delta Air Lines, Delta Connection, and flights connecting to Delta's code-share partners.

How do you use the Travel Bank card?
ATB cards are designed to work much like a checking account debit card. Funds are withdrawn from your account on air travel purchases until your balance is depleted. The card can be used at participating travel agencies and at all Delta sales points such as reservation call centers, online websites and ticket counters. Columbus Bank & Turst will provide a monthly statement with your account summary and transaction detail.

Can the ATB card be used for other travel services?
No. Travel Bank funds can only be used for purchasing air travel on Delta Air Lines. It cannot be used to purchase travel packages, rental cars, hotels, etc. Charges associated with booking air travel such as website fees or agency service charges will not be deducted from your ATB fund. If charged to your account, booking feels will be billed back to the ATB Partner at the end of the month with your monthly bank statement. Columbus Bank & Trust will assess late charges for any unpaid fee balances.

Is the Travel Bank only good for Delta flights originating in Redmond?
Your Travel Bank card can be used for any flight on Delta Air Lines or Delta Connection anywhere in the country.

How long do I have to use my Travel Bank Fund?
You will have 12 months from the date of initial service in Redmond to use the balance of your account. Any funds remaining in the ATB account at the end of the one year period will be refunded to your company in the form of Delta Air Lines air travel vouchers. These vouchers are good for an additional three months.

Are there incentive agreements for Delta's frequent flyer programs?
Delta will offer limited cross over status in the SkyMiles frequent flyer program to all ATB Partners who have obtained preferred status in the frequent flyer programs of the incumbent carriers serving the Redmond Airport. The cross-over program involves the exchange of comparable status and the benefits received as a preferred customer. There is no exchange in actual mileage.

Do ATB Partners receive special discounted airfares?
Delta Air Lines will not offer discounted prices to ATB Partners.

Is there a minimum pledge?
Yes. The minimum is $2,000 and there is no maximum.

What happens if Delta discontinues its Redmond air service before one year is up?
All funds in this program are protected, and any unused amount in your account will be refunded to you if Delta exits the market, is purchased by another airline, or modifies its service within the one-year period.

Why should I join the Travel Bank if I do not have business in Salt Lake City?
Salt Lake City International Airport is Delta's third-largest hub. From Salt Lake City, passengers can make direct connections (departures within three hours) to over 60 destinations on Delta Air Lines. Delta's commuter partner, Delta Connection/SkyWest has 156 additional departures. Other airlines such as AeroMexico, America West, America West Express, American Airlines, Continental, Frontier, jetBlue Airways, Northwest, Southwest, United Airlines, and United Express offer 450 scheduled daily flights from Salt Lake City, UT.

Once the actual Travel Bank is established can I contribute more funds or take part in it at that time?
No. The Travel Bank will be offered for a limited time and funds are only good for a 12 month time frame from the start of service.

Below is a list of meetings scheduled throughout the tri-county area the weeks of November 15-19 and November 29-December 3. Meetings for the following week have not been scheduled at this time.

Airline Travel Bank™ Meetings Schedule